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[Federal Register Volume 79, Number 1 (Thursday, January 2, 2014)]
[Rules and Regulations]
[Pages 26-34]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30625]

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DEPARTMENT OF STATE

22 CFR Parts 120, 121, 123, 124, and 126

[Public Notice 8566]
RIN 1400-AD40

Amendment to the International Traffic in Arms Regulations: 
Continued Implementation of Export Control Reform; Correction

AGENCY: Department of State.

ACTION: Final rule, correction.

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SUMMARY: The Department of State is correcting a final rule that 
appeared in the Federal Register of July 8, 2013 (78 FR 40922). That 
rule amended the International Traffic in Arms Regulations (ITAR) to 
revise four U.S. Munitions List (USML) categories and provide new and 
revised definitions.

DATES: This rule is effective January 6, 2014.

FOR FURTHER INFORMATION CONTACT: Ms. Sarah J. Heidema, Deputy Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2809; email DDTCResponseTeam@state.gov. ATTN: Regulatory 
Change, Corrections to Second ECR Final Rule.

SUPPLEMENTARY INFORMATION: The Department provides the following 
corrections to the rule, ``Amendment to the International Traffic in 
Arms Regulations: Continued Implementation of Export Control Reform,'' 
published on July 8, 2013 and effective on January 6, 2014 (78 FR 
40922). As part of the President's Export Control Reform (ECR) effort, 
that rule amended the International Traffic in Arms Regulations (ITAR) 
to revise four U.S. Munitions List (USML) categories and provide new 
and revised definitions.
    The changes in this rule are meant to clarify the regulation by 
correcting punctuation, providing exact effective dates for the 
paragraphs regarding developmental articles, and providing a revised 
Supplement No. 1 to part 126, which takes into account the changes made 
to the USML categories revised in the rule published on July 8, 2013.
    Pursuant to ECR, the Department of Commerce has been publishing 
revisions to the Export Administration Regulations, including various 
revisions to the Commerce Control List (CCL). Revision of the USML and 
CCL are coordinated so there is uninterrupted regulatory coverage for 
items moving from the jurisdiction of the Department of State to that 
of the Department of Commerce. The Department of Commerce's companion 
to the rule corrected in this notice (see ``Revisions to the Export 
Administration Regulations: Military Vehicles; Vessels of War; 
Submersible Vessels, Oceanographic Equipment; Related Items; and 
Auxiliary and Miscellaneous Items That the President Determines No 
Longer Warrant Control Under the United States Munitions List,'' 78 FR 
40892) is also corrected in this edition of the Federal Register.
    The following corrections are made to the rule, ``Amendment to the 
International Traffic in Arms Regulations: Continued Implementation of 
Export Control Reform,'' published on July 8, 2013:

0
1. On page 40924, in the third column, in the second from last 
paragraph, after ``introduction,'' add the following: ``The Department 
also notes that paragraph (d)(1) controls ablative materials, articles 
the subject of unrevised USML Category IV(f). The Department reiterates 
the principle provided in the first rule implementing Export Control 
Reform (see 78 FR 22740): where there is overlap in control regarding a 
particular article, the control of the revised USML category supersedes 
that of the unrevised USML category.''

PART 121--[CORRECTED]

Sec.  121.1  [Corrected]

0
2. On page 40928, in the first column, in Category VI, paragraph (c), a 
comma

[[Page 27]]

is placed after ``vessels'' and ``therefor.'' In Note 1 to paragraph 
(c), in the introductory text, ``developmental'' is removed, and a 
comma is placed after ``vessels'' and ``therefor.'' In Note 3 to 
paragraph (c), the text after ``dated'' is removed and replaced with 
``July 8, 2014, or later.''
0
3. On page 40928, in the third column, in paragraph (f)(8), a comma is 
placed after ``aircraft).'' In Note 2 to paragraph (f), remove 
``also.''
0
4. On page 40930, in the second column, in Category XIII, in Note 1 to 
paragraph (e)(7), in the introductory text, ``developmental'' is 
removed. In Note 3 to paragraph (e)(7), the text after ``dated'' is 
removed and replaced with ``July 8, 2014, or later.''
0
5. On page 40931, in the second column, in paragraph (m)(9), the 
formula is replaced with the following:
[GRAPHIC] [TIFF OMITTED] TR02JA14.000

0
6. On page 40931, in the third column, at the end of paragraph (m)(9), 
add the following: ``If witness plate is penetrated, Pr is 
the distance from the projectile to the front edge of the witness 
plate. If not penetrated, Pr is negative and is the distance 
from the back edge of the target to the projectile.'' In Category XX, 
in Note 1 to paragraph (a)(7), in the introductory text, 
``developmental'' is removed. In Note 3 to paragraph (a)(7), the text 
after ``dated'' is removed and replaced with ``July 8, 2014, or 
later.''

PART 126--[CORRECTED]

0
7. On page 40933, at the end of column three, before the signature, add 
the following amendments:

PART 126--GENERAL POLICIES AND PROVISIONS

0
15. The authority citation for part 126 continues to read as follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Pub. L. 90-629, 90 Stat. 
744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 2651a; 
22 U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899; 
Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. L. 111-
266; Sections 7045 and 7046, Pub. L. 112-74; E.O. 13637, 78 FR 
16129.
0
16. Supplement No. 1 to part 126 is revised to read as follows:

                                                Supplement No. 1*
----------------------------------------------------------------------------------------------------------------
                                                                          (CA) Sec.     (AS) Sec.     (UK) Sec.
             USML category                         Exclusion                126.5        126.16        126.17
----------------------------------------------------------------------------------------------------------------
I-XXI.................................  Classified defense articles               X             X             X
                                         and services. See Note 1..
I-XXI.................................  Defense articles listed in the            X             X             X
                                         Missile Technology Control
                                         Regime (MTCR) Annex.
I-XXI.................................  U.S. origin defense articles    ............            X             X
                                         and services used for
                                         marketing purposes and not
                                         previously licensed for
                                         export in accordance with
                                         this subchapter.
I-XXI.................................  Defense services for or                   X
                                         technical data related to
                                         defense articles identified
                                         in this supplement as
                                         excluded from the Canadian
                                         exemption.
I-XXI.................................  Any transaction involving the             X
                                         export of defense articles
                                         and services for which
                                         congressional notification is
                                         required in accordance with
                                         Sec.   123.15 and Sec.
                                         124.11 of this subchapter.
I-XXI.................................  U.S. origin defense articles    ............            X             X
                                         and services specific to
                                         developmental systems that
                                         have not obtained written
                                         Milestone B approval from the
                                         U.S. Department of Defense
                                         milestone approval authority,
                                         unless such export is
                                         pursuant to a written
                                         solicitation or contract
                                         issued or awarded by the U.S.
                                         Department of Defense for an
                                         end-use identified in
                                         paragraph (e)(1), (e)(2), or
                                         (e)(4) of Sec.   126.16 or
                                         Sec.   126.17 of this
                                         subchapter and is consistent
                                         with other exclusions of this
                                         supplement.
I-XXI.................................  Nuclear weapons strategic                 X
                                         delivery systems and all
                                         components, parts,
                                         accessories, and attachments
                                         specifically designed for
                                         such systems and associated
                                         equipment.
I-XXI.................................  Defense articles and services   ............            X             X
                                         specific to the existence or
                                         method of compliance with
                                         anti-tamper measures, where
                                         such measures are readily
                                         identifiable, made at
                                         originating Government
                                         direction.
I-XXI.................................  Defense articles and services   ............            X             X
                                         specific to reduced
                                         observables or counter low
                                         observables in any part of
                                         the spectrum. See Note 2.
I-XXI.................................  Defense articles and services   ............            X             X
                                         specific to sensor fusion
                                         beyond that required for
                                         display or identification
                                         correlation See Note 3.
I-XXI.................................  Defense articles and services   ............            X             X
                                         specific to the automatic
                                         target acquisition or
                                         recognition and cueing of
                                         multiple autonomous unmanned
                                         systems.
I-XXI.................................  Nuclear power generating        ............  ............            X
                                         equipment or propulsion
                                         equipment (e.g., nuclear
                                         reactors), specifically
                                         designed for military use and
                                         components therefore,
                                         specifically designed for
                                         military use. See also Sec.
                                         123.20 of this subchapter.
I-XXI.................................  Libraries (parametric           ............  ............            X
                                         technical databases)
                                         specially designed for
                                         military use with equipment
                                         controlled on the USML. See
                                         Note 13.

[[Page 28]]

 
I-XXI.................................  Defense services or technical             X
                                         data specific to applied
                                         research as defined in Sec.
                                         125.4(c)(3) of this
                                         subchapter, design
                                         methodology as defined in
                                         Sec.   125.4(c)(4) of this
                                         subchapter, engineering
                                         analysis as defined in Sec.
                                         125.4(c)(5) of this
                                         subchapter, or manufacturing
                                         know-how as defined in Sec.
                                         125.4(c)(6) of this
                                         subchapter. See Note 12.
I-XXI.................................  Defense services other than               X
                                         those required to prepare a
                                         quote or bid proposal in
                                         response to a written request
                                         from a department or agency
                                         of the United States Federal
                                         Government or from a Canadian
                                         Federal, Provincial, or
                                         Territorial Government; or
                                         defense services other than
                                         those required to produce,
                                         design, assemble, maintain or
                                         service a defense article for
                                         use by a registered U.S.
                                         company, or a U.S. Federal
                                         Government Program, or for
                                         end-use in a Canadian
                                         Federal, Provincial, or
                                         Territorial Government
                                         Program. See Note 14.
I.....................................  Firearms, close assault                   X
                                         weapons, and combat shotguns.
II(k).................................  Software source code related    ............            X             X
                                         to USML Category II(c),
                                         II(d), or II(i). See Note 4.
II(k).................................  Manufacturing know-how related            X             X             X
                                         to USML Category II(d). See
                                         Note 5.
III...................................  Ammunition for firearms, close            X
                                         assault weapons, and combat
                                         shotguns listed in USML
                                         Category I.
III...................................  Defense articles and services   ............  ............            X
                                         specific to ammunition and
                                         fuse setting devices for guns
                                         and armament controlled in
                                         USML Category II.
III(e)................................  Manufacturing know-how related            X             X             X
                                         to USML Category III(d)(1) or
                                         III(d)(2) and their specially
                                         designed components. See Note
                                         5.
III(e)................................  Software source code related    ............            X             X
                                         to USML Category III(d)(1) or
                                         III(d)(2). See Note 4.
IV....................................  Defense articles and services             X             X             X
                                         specific to man-portable air
                                         defense systems (MANPADS).
                                         See Note 6.
IV....................................  Defense articles and services   ............  ............            X
                                         specific to rockets, designed
                                         or modified for non-military
                                         applications that do not have
                                         a range of 300 km (i.e., not
                                         controlled on the MTCR Annex).
IV....................................  Defense articles and services   ............            X             X
                                         specific to torpedoes.
IV....................................  Defense articles and services             X             X             X
                                         specific to anti-personnel
                                         landmines. See Note 15.
IV....................................  Defense articles and services             X             X             X
                                         specific to cluster
                                         munitions. See Note 16.
IV(i).................................  Software source code related    ............            X             X
                                         to USML Category IV(a),
                                         IV(b), IV(c), or IV(g). See
                                         Note 4.
IV(i).................................  Manufacturing know-how related            X             X             X
                                         to USML Category IV(a),
                                         IV(b), IV(d), or IV(g) and
                                         their specially designed
                                         components See Note 5..
V.....................................  The following energetic         ............  ............            X
                                         materials and related
                                         substances:.
                                        a. TATB
                                         (triaminotrinitrobenzene)
                                         (CAS 3058-38-6);.
                                        b. Explosives controlled in
                                         USML Category V(a)(32) or
                                         V(a)(33);.
                                        c. Iron powder (CAS 7439-89-6)
                                         with particle size of 3
                                         micrometers or less produced
                                         by reduction of iron oxide
                                         with hydrogen;.
                                        d. BOBBA-8 (bis(2-
                                         methylaziridinyl)2-(2-
                                         hydroxypropanoxy) propylamino
                                         phosphine oxide), and other
                                         MAPO derivatives;.
                                        e. N-methyl-p-nitroaniline
                                         (CAS 100-15-2); or.
                                        f.
                                         Trinitrophenylmethylnitramine
                                         (tetryl) (CAS 479-45-8).
V(c)(7)...............................  Pyrotechnics and pyrophorics    ............  ............            X
                                         specifically formulated for
                                         military purposes to enhance
                                         or control radiated energy in
                                         any part of the IR spectrum.
V(d)(3)...............................  Bis-2, 2-dinitropropylnitrate   ............  ............            X
                                         (BDNPN).
VI....................................  Defense articles specific to    ............  ............            X
                                         cryogenic equipment, and
                                         specially designed components
                                         or accessories therefor,
                                         specially designed or
                                         configured to be installed in
                                         a vehicle for military
                                         ground, marine, airborne or
                                         space applications, capable
                                         of operating while in motion
                                         and of producing or
                                         maintaining temperatures
                                         below 103 K (-170[deg]C).

[[Page 29]]

 
VI....................................  Defense Articles specific to    ............  ............            X
                                         superconductive electrical
                                         equipment (rotating machinery
                                         and transformers) specially
                                         designed or configured to be
                                         installed in a vehicle for
                                         military ground, marine,
                                         airborne, or space
                                         applications and capable of
                                         operating while in motion.
                                         This, however, does not
                                         include direct current hybrid
                                         homopolar generators that
                                         have single-pole normal metal
                                         armatures which rotate in a
                                         magnetic field produced by
                                         superconducting windings,
                                         provided those windings are
                                         the only superconducting
                                         component in the generator.
VI....................................  Defense articles and services   ............            X             X
                                         specific to naval technology
                                         and systems relating to
                                         acoustic spectrum control and
                                         awareness See Note 10.
VI(a).................................  Nuclear powered vessels.......            X             X             X
VI(e).................................  Defense articles and services             X             X             X
                                         specific to naval nuclear
                                         propulsion equipment. See
                                         Note 7.
VI(g).................................  Software source code related    ............            X             X
                                         to USML Category VI(a) or
                                         VI(c) See Note 4.
VII...................................  Defense articles specific to    ............  ............            X
                                         cryogenic equipment, and
                                         specially designed components
                                         or accessories therefor,
                                         specially designed or
                                         configured to be installed in
                                         a vehicle for military
                                         ground, marine, airborne or
                                         space applications, capable
                                         of operating while in motion
                                         and of producing or
                                         maintaining temperatures
                                         below 103 K (-170[deg]C).
VII...................................  Defense articles specific to    ............  ............            X
                                         superconductive electrical
                                         equipment (rotating machinery
                                         and transformers) specially
                                         designed or configured to be
                                         installed in a vehicle for
                                         military ground, marine,
                                         airborne, or space
                                         applications and capable of
                                         operating while in motion.
                                         This, however, does not
                                         include direct current hybrid
                                         homopolar generators that
                                         have single-pole normal metal
                                         armatures which rotate in a
                                         magnetic field produced by
                                         superconducting windings,
                                         provided those windings are
                                         the only superconducting
                                         component in the generator.
VIII..................................  Defense articles specific to    ............  ............            X
                                         cryogenic equipment, and
                                         specially designed components
                                         and accessories therefor,
                                         specially designed or
                                         configured to be installed in
                                         a vehicle for military
                                         ground, marine, airborne or
                                         space applications, capable
                                         of operating while in motion
                                         and of producing or
                                         maintaining temperatures
                                         below 103 K (-170[deg]C).
VIII..................................  Defense articles specific to    ............  ............            X
                                         superconductive electrical
                                         equipment (rotating machinery
                                         and transformers) specially
                                         designed or configured to be
                                         installed in a vehicle for
                                         military ground, marine,
                                         airborne, or space
                                         applications and capable of
                                         operating while in motion.
                                         This, however, does not
                                         include direct current hybrid
                                         homopolar generators that
                                         have single-pole normal metal
                                         armatures which rotate in a
                                         magnetic field produced by
                                         superconducting windings,
                                         provided those windings are
                                         the only superconducting
                                         component in the generator.
VIII(a)...............................  All USML Category VIII(a)                 X
                                         items.
VIII(f)...............................  Developmental aircraft parts,             X
                                         components, accessories, and
                                         attachments identified in
                                         USML Category VIII(f).
VIII(i)...............................  Manufacturing know-how related            X             X             X
                                         to USML Category VIII(a) or
                                         VIII(e), and specially
                                         designed parts or components
                                         therefor. See Note 5.
VIII(i)...............................  Software source code related    ............            X             X
                                         to USML Category VIII(a) or
                                         VIII(e). See Note 4.
IX....................................  Training or simulation          ............            X             X
                                         equipment for Man Portable
                                         Air Defense Systems
                                         (MANPADS). See Note 6.
IX(e).................................  Software source code related    ............            X             X
                                         to USML Category IX(a) or
                                         IX(b). See Note 4.
IX(e).................................  Software that is both           ............  ............            X
                                         specifically designed or
                                         modified for military use and
                                         specifically designed or
                                         modified for modeling or
                                         simulating military
                                         operational scenarios.
X(e)..................................  Manufacturing know-how related            X             X             X
                                         to USML Category X(a)(1) or
                                         X(a)(2), and specially
                                         designed components therefor.
                                         See Note 5.
XI(a).................................  Defense articles and services   ............            X             X
                                         specific to countermeasures
                                         and counter- countermeasures
                                         See Note 9.

[[Page 30]]

 
XI(a).................................  High Frequency and Phased       ............            X
                                         Array Microwave Radar
                                         systems, with capabilities
                                         such as search, acquisition,
                                         tracking, moving target
                                         indication, and imaging radar
                                         systems. See Note 17.
XI....................................  Defense articles and services   ............            X             X
                                         specific to naval technology
                                         and systems relating to
                                         acoustic spectrum control and
                                         awareness. See Note 10.
XI(b), XI(c), XI(d)...................  Defense articles and services   ............            X             X
                                         specific to USML Category XI
                                         (b) (e.g., communications
                                         security (COMSEC) and
                                         TEMPEST).
XI(d).................................  Software source code related    ............            X             X
                                         to USML Category XI(a). See
                                         Note 4.
XI(d).................................  Manufacturing know-how related            X             X             X
                                         to USML Category XI(a)(3) or
                                         XI(a)(4), and specially
                                         designed components therefor.
                                         See Note 5.
XII...................................  Defense articles and services   ............            X             X
                                         specific to countermeasures
                                         and counter- countermeasures.
                                         See Note 9.
XII...................................  Defense articles and services             X
                                         specific to USML Category
                                         XII(c) articles, except any
                                         1st- and 2nd-generation image
                                         intensification tubes and 1st-
                                          and 2nd-generation image
                                         intensification night
                                         sighting equipment. End-items
                                         in USML Category XII(c) and
                                         related technical data
                                         limited to basic operations,
                                         maintenance, and training
                                         information as authorized
                                         under the exemption in Sec.
                                         125.4(b)(5) of this
                                         subchapter may be exported
                                         directly to a Canadian
                                         Government entity (i.e.,
                                         federal, provincial,
                                         territorial, or municipal)
                                         consistent with Sec.   126.5,
                                         other exclusions, and the
                                         provisions of this subchapter.
XII...................................  Technical data or defense                 X             X             X
                                         services for night vision
                                         equipment beyond basic
                                         operations, maintenance, and
                                         training data. However, the
                                         AS and UK Treaty exemptions
                                         apply when such export is
                                         pursuant to a written
                                         solicitation or contract
                                         issued or awarded by the U.S.
                                         Department of Defense for an
                                         end-use identified in
                                         paragraph (e)(1), (e)(2), or
                                         (e)(4) of Sec.   126.16 or
                                         Sec.   126.17 of this
                                         subchapter and is consistent
                                         with other exclusions of this
                                         supplement.
XII(f)................................  Manufacturing know-how related            X             X             X
                                         to USML Category XII(d) and
                                         specially designed components
                                         therefor. See Note 5.
XII(f)................................  Software source code related    ............            X             X
                                         to USML Category XII(a),
                                         XII(b), XII(c), or XII(d).
                                         See Note 4.
XIII(b)...............................  Defense articles and services   ............            X             X
                                         specific to USML Category
                                         XIII(b) (Military Information
                                         Security Assurance Systems,
                                         cryptographic devices,
                                         software, and components).
XIII(d)...............................  Carbon/carbon billets and       ............  ............            X
                                         preforms which are reinforced
                                         in three or more dimensional
                                         planes, specifically
                                         designed, developed,
                                         modified, configured or
                                         adapted for defense articles.
XIII(e)...............................  Defense articles and services   ............  ............            X
                                         specific to armored plate
                                         manufactured to comply with a
                                         military standard or
                                         specification or suitable for
                                         military use. See Note 11.
XIII(g)...............................  Defense articles and services   ............  ............            X
                                         related to concealment and
                                         deception equipment and
                                         materials.
XIII(h)...............................  Energy conversion devices       ............  ............            X
                                         other than fuel cells.
XIII(j)...............................  Defense articles and services   ............            X             X
                                         related to hardware
                                         associated with the
                                         measurement or modification
                                         of system signatures for
                                         detection of defense articles
                                         as described in Note 2.
XIII(l)...............................  Software source code related    ............            X             X
                                         to USML Category XIII(a). See
                                         Note 4.
XIV...................................  Defense articles and services   ............            X             X
                                         related to toxicological
                                         agents, including chemical
                                         agents, biological agents,
                                         and associated equipment.
XIV(a), XIV(b), XIV(d), XIV(e), XIV(f)  Chemical agents listed in USML            X
                                         Category XIV(a), (d) and (e),
                                         biological agents and
                                         biologically derived
                                         substances in USML Category
                                         XIV(b), and equipment listed
                                         in USML Category XIV(f) for
                                         dissemination of the chemical
                                         agents and biological agents
                                         listed in USML Category
                                         XIV(a), (b), (d), and (e).
XV(a).................................  Defense articles and services             X             X             X
                                         specific to spacecraft/
                                         satellites. However, the
                                         Canadian exemption may be
                                         used for commercial
                                         communications satellites
                                         that have no other type of
                                         payload.

[[Page 31]]

 
XV(b).................................  Defense articles and services   ............            X             X
                                         specific to ground control
                                         stations for spacecraft
                                         telemetry, tracking, and
                                         control. Defense articles and
                                         services are not excluded
                                         under this entry if they do
                                         not control the spacecraft.
                                         Receivers for receiving
                                         satellite transmissions are
                                         also not excluded under this
                                         entry.
XV(c).................................  Defense articles and services   ............            X             X
                                         specific to GPS/PPS security
                                         modules.
XV(c).................................  Defense articles controlled in            X
                                         USML Category XV(c) except
                                         end-items for end-use by the
                                         Federal Government of Canada
                                         exported directly or
                                         indirectly through a Canadian-
                                         registered person.
XV(d).................................  Defense articles and services             X             X             X
                                         specific to radiation-
                                         hardened microelectronic
                                         circuits.
XV(e).................................  Anti-jam systems with the                 X
                                         ability to respond to
                                         incoming interference by
                                         adaptively reducing antenna
                                         gain (nulling) in the
                                         direction of the interference.
XV(e).................................  Antennas having any of the
                                         following:.
                                        a. Aperture (overall dimension
                                         of the radiating portions of
                                         the antenna) greater than 30
                                         feet;.
                                        b. All sidelobes less than or
                                         equal to -35 dB relative to
                                         the peak of the main beam; or.
                                        c. Designed, modified, or                 X
                                         configured to provide
                                         coverage area on the surface
                                         of the earth less than 200
                                         nautical miles in diameter,
                                         where ``coverage area'' is
                                         defined as that area on the
                                         surface of the earth that is
                                         illuminated by the main beam
                                         width of the antenna (which
                                         is the angular distance
                                         between half power points of
                                         the beam).
XV(e).................................  Optical intersatellite data               X
                                         links (cross links) and
                                         optical ground satellite
                                         terminals.
XV(e).................................  Spaceborne regenerative                   X
                                         baseband processing (direct
                                         up and down conversion to and
                                         from baseband) equipment.
XV(e).................................  Propulsion systems which                  X
                                         permit acceleration of the
                                         satellite on-orbit (i.e.,
                                         after mission orbit
                                         injection) at rates greater
                                         than 0.1 g.
XV(e).................................  Attitude control and                      X
                                         determination systems
                                         designed to provide
                                         spacecraft pointing
                                         determination and control or
                                         payload pointing system
                                         control better than 0.02
                                         degrees per axis.
XV(e).................................  All specifically designed or              X
                                         modified systems, components,
                                         parts, accessories,
                                         attachments, and associated
                                         equipment for all USML
                                         Category XV(a) items, except
                                         when specifically designed or
                                         modified for use in
                                         commercial communications
                                         satellites.
XV(e).................................  Defense articles and services   ............            X             X
                                         specific to spacecraft and
                                         ground control station
                                         systems (only for telemetry,
                                         tracking and control as
                                         controlled in USML Category
                                         XV(b)), subsystems,
                                         components, parts,
                                         accessories, attachments, and
                                         associated equipment.
XV(f).................................  Technical data and defense                X             X             X
                                         services directly related to
                                         the other defense articles
                                         excluded from the exemptions
                                         for USML Category XV.
XVI...................................  Defense articles and services             X             X             X
                                         specific to design and
                                         testing of nuclear weapons.
XVI(c)................................  Nuclear radiation measuring               X
                                         devices manufactured to
                                         military specifications.
XVI(e)................................  Software source code related    ............            X             X
                                         to USML Category XVI(c). See
                                         Note 4.
XVII..................................  Classified articles, and                  X             X             X
                                         technical data and defense
                                         services relating thereto,
                                         not elsewhere enumerated. See
                                         Note 1.
XVIII.................................  Defense articles and services   ............            X             X
                                         specific to directed energy
                                         weapon systems.
XIX(e), XIX(f)(1), XIX(f)(2), XIX(g)..  Defense articles and services   ............            X             X
                                         specific to gas turbine
                                         engine hot section components
                                         and to Full Authority Digital
                                         Engine Control Systems
                                         (FADEC) or Digital Electronic
                                         Engine Controls (DEEC). See
                                         Note 8.
XIX(g)................................  Technical data and defense                X             X             X
                                         services for gas turbine
                                         engine hot sections. (This
                                         does not include hardware).
                                         See Note 8.
XX....................................  Defense articles and services             X             X             X
                                         related to submersible
                                         vessels, oceanographic, and
                                         associated equipment.

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XX....................................  Defense articles and services   ............            X             X
                                         specific to naval technology
                                         and systems relating to
                                         acoustic spectrum control and
                                         awareness. See Note 10.
XX....................................  Defense articles specific to    ............  ............            X
                                         cryogenic equipment, and
                                         specially designed components
                                         or accessories therefor,
                                         specially designed or
                                         configured to be installed in
                                         a vehicle for military
                                         ground, marine, airborne or
                                         space applications, capable
                                         of operating while in motion
                                         and of producing or
                                         maintaining temperatures
                                         below 103 K (-170[deg]C).
XX....................................  Defense articles specific to    ............  ............            X
                                         superconductive electrical
                                         equipment (rotating machinery
                                         and transformers) specially
                                         designed or configured to be
                                         installed in a vehicle for
                                         military ground, marine,
                                         airborne, or space
                                         applications and capable of
                                         operating while in motion.
                                         This, however, does not
                                         include direct current hybrid
                                         homopolar generators that
                                         have single-pole normal metal
                                         armatures which rotate in a
                                         magnetic field produced by
                                         superconducting windings,
                                         provided those windings are
                                         the only superconducting
                                         component in the generator.
XX(a).................................  Nuclear powered vessels.......            X             X             X
XX(b).................................  Defense articles and services             X             X             X
                                         specific to naval nuclear
                                         propulsion equipment. See
                                         Note 7.
XX(c).................................  Defense articles and services   ............            X             X
                                         specific to submarine combat
                                         control systems.
XX(d).................................  Software source code related    ............            X             X
                                         to USML Category XX(a). See
                                         Note 4.
XXI...................................  Articles, and technical data              X             X             X
                                         and defense services relating
                                         thereto, not otherwise
                                         enumerated on the USML, but
                                         placed in this category by
                                         the Director, Office of
                                         Defense Trade Controls Policy.
----------------------------------------------------------------------------------------------------------------
Note 1: Classified defense articles and services are not eligible for export under the Canadian exemptions. U.S.
  origin articles, technical data, and services controlled in USML Category XVII are not eligible for export
  under the UK Treaty exemption. U.S. origin classified defense articles and services are not eligible for
  export under either the UK or AS Treaty exemptions except when being released pursuant to a U.S. Department of
  Defense written request, directive, or contract that provides for the export of the defense article or
  service.
Note 2: The phrase ``any part of the spectrum'' includes radio frequency (RF), infrared (IR), electro-optical,
  visual, ultraviolet (UV), acoustic, and magnetic. Defense articles related to reduced observables or counter
  reduced observables are defined as:
(a) Signature reduction (radio frequency (RF), infrared (IR), Electro-Optical, visual, ultraviolet (UV),
  acoustic, magnetic, RF emissions) of defense platforms, including systems, subsystems, components, materials
  (including dual-purpose materials used for Electromagnetic Interference (EM) reduction), technologies, and
  signature prediction, test and measurement equipment and software and material transmissivity/reflectivity
  prediction codes and optimization software.
(b) Electronically scanned array radar, high power radars, radar processing algorithms, periscope-mounted radar
  systems (PATRIOT), LADAR, multistatic and IR focal plane array-based sensors, to include systems, subsystems,
  components, materials, and technologies.
Note 3: Defense Articles related to sensor fusion beyond that required for display or identification correlation
  is defined as techniques designed to automatically combine information from two or more sensors/sources for
  the purpose of target identification, tracking, designation, or passing of data in support of surveillance or
  weapons engagement. Sensor fusion involves sensors such as acoustic, infrared, electro optical, frequency,
  etc. Display or identification correlation refers to the combination of target detections from multiple
  sources for assignment of common target track designation.
Note 4: Software source code beyond that source code required for basic operation, maintenance, and training for
  programs, systems, and/or subsystems is not eligible for use of the UK or AS Treaty exemptions, unless such
  export is pursuant to a written solicitation or contract issued or awarded by the U.S. Department of Defense
  for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of Sec.   126.16 or Sec.   126.17 of this
  subchapter and is consistent with other exclusions of this supplement.
Note 5: Manufacturing know-how, as defined in Sec.   125.4(c)(6) of this subchapter, is not eligible for use of
  the UK or AS Treaty exemptions, unless such export is pursuant to a written solicitation or contract issued or
  awarded by the U.S. Department of Defense for an end-use identified in paragraph (e)(1), (e)(2), or (e)(4) of
  Sec.   126.16 or Sec.   126.17 of this subchapter and is consistent with other exclusions of this supplement.
Note 6: Defense Articles specific to Man Portable Air Defense Systems (MANPADS) includes missiles which can be
  used without modification in other applications. It also includes production and test equipment and components
  specifically designed or modified for MANPAD systems, as well as training equipment specifically designed or
  modified for MANPAD systems.
Note 7: Naval nuclear propulsion plants includes all of USML Category VI(e). Naval nuclear propulsion
  information is technical data that concerns the design, arrangement, development, manufacture, testing,
  operation, administration, training, maintenance, and repair of the propulsion plants of naval nuclear-powered
  ships and prototypes, including the associated shipboard and shore-based nuclear support facilities. Examples
  of defense articles covered by this exclusion include nuclear propulsion plants and nuclear submarine
  technologies or systems; nuclear powered vessels (see USML Categories VI and XX).
Note 8: A complete gas turbine engine with embedded hot section components or digital engine controls is
  eligible for export or transfer under the Treaties. Technical data, other than required for routine external
  maintenance and operation, related to the hot section is not eligible for export under the Canadian exemption.
  Technical data, other than required for routine external maintenance and operation, related to the hot section
  or digital engine controls, as well as individual hot section parts or components are not eligible for the
  Treaty exemption whether shipped separately or accompanying a complete engine. Gas turbine engine hot section
  exempted defense article components and technology are combustion chambers and liners; high pressure turbine
  blades, vanes, disks and related cooled structure; cooled low pressure turbine blades, vanes, disks and
  related cooled structure; cooled augmenters; and cooled nozzles. Examples of gas turbine engine hot section
  developmental technologies are Integrated High Performance Turbine Engine Technology (IHPTET), Versatile,
  Affordable Advanced Turbine Engine (VAATE), and Ultra-Efficient Engine Technology (UEET), which are also
  excluded from export under the exemptions.
Note 9: Examples of countermeasures and counter-countermeasures related to defense articles not exportable under
  the AS or UK Treaty exemptions are:
(a) IR countermeasures;
(b) Classified techniques and capabilities;

[[Page 33]]

 
(c) Exports for precision radio frequency location that directly or indirectly supports fire control and is used
  for situation awareness, target identification, target acquisition, and weapons targeting and Radio Direction
  Finding (RDF) capabilities. Precision RF location is defined as angle of arrival accuracy of less than five
  degrees (RMS) and RF emitter location of less than ten percent range error;
(d) Providing the capability to reprogram; and
(e) Acoustics (including underwater), active and passive countermeasures, and counter-countermeasures.
Note 10: Examples of defense articles covered by this exclusion include underwater acoustic vector sensors;
  acoustic reduction; off-board, underwater, active and passive sensing, propeller/propulsor technologies; fixed
  mobile/floating/powered detection systems which include in-buoy signal processing for target detection and
  classification; autonomous underwater vehicles capable of long endurance in ocean environments (manned
  submarines excluded); automated control algorithms embedded in on-board autonomous platforms which enable (a)
  group behaviors for target detection and classification, (b) adaptation to the environment or tactical
  situation for enhancing target detection and classification; ``intelligent autonomy'' algorithms which define
  the status, group (greater than 2) behaviors, and responses to detection stimuli by autonomous, underwater
  vehicles; and low frequency, broad-band ``acoustic color,'' active acoustic ``fingerprint'' sensing for the
  purpose of long range, single pass identification of ocean bottom objects, buried or otherwise (controlled
  under Category USML XI(a)(1), (a)(2), (b), (c), and (d)).
Note 11: This exclusion does not apply to the platforms (e.g., vehicles) for which the armored plates are
  applied. For exclusions related to the platforms, reference should be made to the other exclusions in this
  list, particularly for the category in which the platform is controlled.
The excluded defense articles include constructions of metallic or non-metallic materials or combinations
  thereof specially designed to provide protection for military systems. The phrase ``suitable for military
  use'' applies to any articles or materials which have been tested to level IIIA or above IAW NIJ standard
  0108.01 or comparable national standard. This exclusion does not include military helmets, body armor, or
  other protective garments which may be exported IAW the terms of the AS or UK Treaty.
Note 12: Defense services or technical data specific to applied research (Sec.   125.4(c)(3) of this
  subchapter), design methodology (Sec.   125.4(c)(4) of this subchapter), engineering analysis (Sec.
  125.4(c)(5) of this subchapter), or manufacturing know-how (Sec.   125.4(c)(6) of this subchapter) are not
  eligible for export under the Canadian exemptions. However, this exclusion does not include defense services
  or technical data specific to build-to-print as defined in Sec.   125.4(c)(1) of this subchapter, build/design-
  to-specification as defined in Sec.   125.4(c)(2) of this subchapter, or basic research as defined in Sec.
  125.4(c)(3) of this subchapter, or maintenance (i.e., inspection, testing, calibration or repair, including
  overhaul, reconditioning and one-to-one replacement of any defective items parts or components, but excluding
  any modification, enhancement, upgrade or other form of alteration or improvement that changes the basic
  performance of the item) of non-excluded defense articles which may be exported subject to other exclusions or
  terms of the Canadian exemptions.
Note 13: The term ``libraries'' (parametric technical databases) means a collection of technical information of
  a military nature, reference to which may enhance the performance of military equipment or systems.
Note 14: In order to utilize the authorized defense services under the Canadian exemption, the following must be
  complied with:
(a) The Canadian contractor and subcontractor must certify, in writing, to the U.S. exporter that the technical
  data and defense services being exported will be used only for an activity identified in Supplement No. 1 to
  part 126 of this subchapter and in accordance with Sec.   126.5 of this subchapter; and
(b) A written arrangement between the U.S. exporter and the Canadian recipient must:
(1) Limit delivery of the defense articles being produced directly to an identified manufacturer in the United
  States registered in accordance with part 122 of this subchapter; a department or agency of the United States
  Federal Government; a Canadian-registered person authorized in writing to manufacture defense articles by and
  for the Government of Canada; a Canadian Federal, Provincial, or Territorial Government;
(2) Prohibit the disclosure of the technical data to any other contractor or subcontractor who is not a Canadian-
  registered person;
(3) Provide that any subcontract contain all the limitations of Sec.   126.5 of this subchapter;
(4) Require that the Canadian contractor, including subcontractors, destroy or return to the U.S. exporter in
  the United States all of the technical data exported pursuant to the contract or purchase order upon
  fulfillment of the contract, unless for use by a Canadian or United States Government entity that requires in
  writing the technical data be maintained. The U.S. exporter must be provided written certification that the
  technical data is being retained or destroyed; and
(5) Include a clause requiring that all documentation created from U.S. origin technical data contain the
  statement that, ``This document contains technical data, the use of which is restricted by the U.S. Arms
  Export Control Act. This data has been provided in accordance with, and is subject to, the limitations
  specified in Sec.   126.5 of the International Traffic in Arms Regulations (ITAR). By accepting this data, the
  consignee agrees to honor the requirements of the ITAR.''
(c) The U.S. exporter must provide the Directorate of Defense Trade Controls a semi-annual report of all their
  on-going activities authorized under Sec.   126.5 of this subchapter. The report shall include the article(s)
  being produced; the end-user(s); the end-item into which the product is to be incorporated; the intended end-
  use of the product; the name and address of all the Canadian contractors and subcontractors.
Note 15: This exclusion does not apply to demining equipment in support of the clearance of landmines and
  unexploded ordnance for humanitarian purposes.
As used in this exclusion, ``anti-personnel landmine'' means any mine placed under, on, or near the ground or
  other surface area, or delivered by artillery, rocket, mortar, or similar means or dropped from an aircraft
  and which is designed to be detonated or exploded by the presence, proximity, or contact of a person; any
  device or material which is designed, constructed, or adapted to kill or injure and which functions
  unexpectedly when a person disturbs or approaches an apparently harmless object or performs an apparently safe
  act; any manually-emplaced munition or device designed to kill, injure, or damage and which is actuated by
  remote control or automatically after a lapse of time.
Note 16: The cluster munitions that are subject to this exclusion are set forth below:
The Convention on Cluster Munitions, signed December 3, 2008, and entered into force on August 1, 2010, defines
  a ``cluster munition'' as:
A conventional munition that is designed to disperse or release explosive submunitions each weighing less than
  20 kilograms, and includes those explosive submunitions. Under the Convention, a ``cluster munition'' does not
  include the following munitions:
(a) A munition or submunition designed to dispense flares, smoke, pyrotechnics or chaff; or a munition designed
  exclusively for an air defense role;
(b) A munition or submunition designed to produce electrical or electronic effects;
(c) A munition that, in order to avoid indiscriminate area effects and the risks posed by unexploded
  submunitions, has all of the following characteristics:
(1) Each munition contains fewer than ten explosive submunitions;
(2) Each explosive submunition weighs more than four kilograms;
(3) Each explosive submunition is designed to detect and engage a single target object;
(4) Each explosive submunition is equipped with an electronic self-destruction mechanism; and
(5) Each explosive submunition is equipped with an electronic self-deactivating feature.
Pursuant to U.S. law (Pub. L. 111-117, section 7055(b)), no military assistance shall be furnished for cluster
  munitions, no defense export license for cluster munitions may be issued, and no cluster munitions or cluster
  munitions technology shall be sold or transferred, unless:
(a) The submunitions of the cluster munitions, after arming, do not result in more than 1 percent unexploded
  ordnance across the range of intended operational environments; and
(b) The agreement applicable to the assistance, transfer or sale of such cluster munitions or cluster munitions
  technology specifies that the cluster munitions will only be used against clearly defined military targets and
  will not be used where civilians are known to be present or in areas normally inhabited by civilians.
Note 17: The radar systems described are controlled in USML Category XI(a)(3)(i) through (v). As used in this
  entry, the term ``systems'' includes equipment, devices, software, assemblies, modules, components, practices,
  processes, methods, approaches, schema, frameworks, and models.
*An ``X'' in the chart indicates that the item is excluded from use under the exemption referenced in the top of
  the column. An item excluded in any one row is excluded regardless of whether other rows may contain a
  description that would include the item.

[[Page 34]]

    Dated: December 17, 2013.
 Rose E. Gottemoeller,
Acting Under Secretary, Arms Control and International Security, 
Department of State.
[FR Doc. 2013-30625 Filed 12-31-13; 8:45 am]
BILLING CODE 4710-25-P
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